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ETHIOPIAN ENERGY AUTHORITY
National Off-Grid Electrification Forum: Mini- Grid Action:
REGULATORY FRAMEWORK - PERSPECTIVES ON MINI-GRID
12 Feb 2020Addis Ababa, Ethiopia
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BELAYNEH GIZAW
Head, Regional Operation Coordination and Support Office &
A/ Director, Licensing and Economic Regulation Directorate
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Why framework?
Why regulation? And What is regulated?
Ongoing and under development activities
Opportunities and Challenges
Concluding Remark
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To ease entry and exit in mini-grid development involvement both for the government and the private sector participants
To establish transparent and trustful engagement in the development endeavor effort
To ascertain investment return and operational undertaking in orderly manner
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Why regulation?
To establish a Win- Win- Win platform for developers, government and end users
What is regulated?
Revenue collected
Services delivered
Tariff rate
Legal and/or Standards compliance
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ONGOING:
➢ Growth and Transformation Plan II (GTP II) and National Electrification Program provides clear impetus for off-grid electrification.
Mini-Grid development
Standalone Solar home systems
Support through MST to private developers
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Sector Implementing Agency and Intermediaries
Public MoWIE, EEU, Regional Energy Bureau’s, Cooperatives
Private Private sector enterprises, Micro finance institutions, other financial intermediaries
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UNDER DEVELOPMENT REGULATORY FRAMEWORK
◦ TARIFF GUIDELINES AND METHODOLOGY FOR OFF-GRID SYSTEMS
◦ DIRECTIVE FOR THE ISSUANCE OF LICENSES FOR OFF- GRID ELECTRICITY SUPPLY
◦ QUALITY OF SERVICE STANDARDS FOR OFF-GRID SUPPLY
◦ DESIGN STANDARD FOR RURAL ELECTRIFICATION
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OpportunitiesThe Business model
Services type
Ownership type
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Type Business model
Services Pay per use
Pay as you go/PAYGO
User cooperative
Ownership BOO/ Built Own Operate
/PPP/ BOOT/ Built Own Operate and Transfer/
BOT/ Built Own Transfer
Design Build, Finance Operate and Manage
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Policy – Energy Policy,
Off-grid strategy,
PPP policy,
GTP II
NEP and NEP2.0
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Legal Framework
Investment proclamation
Investment regulation
Energy Proclamation and its amendment
Energy Regulation
PPP proclamation
Institutional Framework
MoWIE
DOE/ Directorate of Electrification/
MoF- PPP –General Directorate
EEA- The national regulator
Regional Energy Bureau’s
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Upfront Capital Lack of the local private sector know how on
how to make business in the sector Fear of encroachment by the grid expansion
and the consequence thereof Lack of clear Federal – Regional mandate
alignment and designated accountability
Line institutions staffing and capacity short fall to handle matters of the private sector involvement in electrification endeavor.
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Though not free from challenge the private sector is given due opportunity to involve in mini-grid and solar home system development.
Regional –Federal sector institutions needs to be aligned and designated with distinct role to play.
Emphasis has to be given to adequately staff and capacitate implementing Agencies.
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The local private sector developer needs to be capacitated on how to make business plan and updates on mini-grid technology installation too.
To excel in the private sector involvement apart from relying on permit holder private sector participants we need to inject a program for capacity building to train and engage young graduates in the form of micro and small enterprises- Employment Generation scheme.
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May we join our effort to excel in energy access to the public at large !
Many thanks for your attention